WHAT IS AFTERPAY?

DEVELOPED by Sydneysider Nick Molnar in 2014, Afterpay offers customers the chance to purchase an item from a retailer and pay it off every two weeks.

While there are no interest rates attached, Afterpay charges missed-payment fees of up to $68, and can then sell on your debt to third-party companies to recover it.

Money editor at finance comparison website RateCity Sally Tindall advised customers to be cautious with the service. “The problem with Afterpay is it encourages impulse buying,” she said.